The U.S. has targeted Kharg Island, Iran’s oil export hub on the Persian Gulf, during the ongoing war with Iran. President Trump says military targets on the island were hit while oil assets were left intact — but he has repeatedly threatened that could change. Damage to Kharg’s oil infrastructure, located at the north end of the Persian Gulf about 15 miles off Iran’s coast, would seriously disrupt Iran’s economy and further strain the global oil supply at a time of volatile prices.
What the U.S. has done so far
In a March 13 Truth Social post, Trump said U.S. Central Command completed “one of the most powerful bombing raids in History of the Middle East” and “totally obliterated” military targets on Kharg Island. He asserted the U.S. left the oil assets alone but warned the pipes and other oil infrastructure could be struck if Iran continued blocking safe passage of ships and large oil tankers through the Strait of Hormuz.
The strait is a critical oil transit chokepoint: in 2024 an average of about 20 million barrels per day passed through it — roughly 20% of global petroleum liquids consumption. Iran has warned it will strike ships transiting the strait that are not carrying Iranian oil, with limited exceptions. The Trump administration has offered to escort ships and urged NATO partners to join; so far other countries have declined and the U.S. has not escorted ships through the strait since the war began. Trump has said he is considering strikes on pipelines on Kharg Island and warned the pipes could be destroyed “on five minutes’ notice.”
The importance of Kharg Island
Kharg Island is an economic lifeline for Iran. Before the war it handled roughly 90% of Iran’s oil exports. Its deep surrounding waters allow massive tankers to dock; much of the Persian Gulf coastline is too shallow for large vessels. If Kharg’s export infrastructure were wiped out, Iran would lose the bulk of its oil revenue and the global market would feel the shock.
Trita Parsi, executive vice president of the Quincy Institute, warned that removing almost all of Iran’s oil from the market would further destabilize already tense oil markets. He said Iranian retaliation is likely, and if Iran and its proxies target transit routes and oil facilities across the Gulf, the result could be a severe reduction in oil transiting the region and a spike in global prices. Parsi noted past attacks on Kharg during the Iran–Iraq war in the 1980s, when Iran found workarounds to continue exporting, but modern strikes would have serious immediate economic effects.
Asian countries, particularly China — the largest buyer of Iranian oil — could be especially vulnerable to disruptions. Parsi said Iran’s likely retaliation would target Gulf Cooperation Council (GCC) states (Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the UAE) and their terminals and depots. The GCC has condemned attacks on member countries and holds more than 32% of the world’s proven crude oil reserves. If Iran struck GCC infrastructure and transit routes, gasoline prices and broader economic costs could rise dramatically; Parsi warned oil could exceed $150 a barrel, pushing U.S. pump prices to $5–$6 a gallon and raising costs for fertilizer and food.
Bloomberg reported that Goldman Sachs projects a five- to six-week stretch of war could shrink the GDP of Qatar and some GCC countries by about 14%, a domino effect that would hit the global economy and has few modern analogues outside the COVID-19 shock.
Trump has had his eye on the island for years
Trump has publicly referenced Kharg Island dating back decades. In a 1988 interview he said one bullet at a U.S. vessel would prompt him to “do a number on Kharg Island” and suggested he’d take it if commander in chief. In 2026 he has reiterated that view, saying years ago he urged attacking Kharg when Iran was “acting up.” Asked directly whether he would take the island, he deflected.
What happens next
Trump praised the March 10 U.S. attack that he said took out military targets on the island but has kept future plans vague while signaling more strikes are ready. He has said U.S. forces “left the pipes” intact but repeatedly hinted those oil facilities could be destroyed in the future, saying the U.S. has strikes “locked and loaded” and that removing the pipes would be quick yet take a long time to rebuild.
Any U.S. strike against Kharg’s oil infrastructure would escalate the conflict and risk broad retaliation that could shut down much of Persian Gulf oil transit for an extended period, sharply raising global energy and commodity prices and inflicting wide economic pain beyond the region.